Index rebounds to rise the most in three weeks on steel, oil gains
By Ye Zhen |
August 29, 2012, Wednesday
|
Print Edition
Print Edition
SHANGHAI stocks yesterday gained the most in three weeks, boosted by steel and oil heavyweights after China's largest steelmaker announced a share buyback plan to shore up investor confidence.
The key Shanghai Composite Index advanced 0.85 percent to settle at 2,073.15 points, its best daily gain since August 6. The index rebounded from earlier losses in the day and after shedding 1.74 percent on Monday, its lowest close in more than three years.
Baoshan Iron and Steel Co, the nation's biggest steelmaker, said it plans to buy back shares worth 5 billion yuan (US$793.7 million) at no more than 5 yuan per share to protect shareholders' interest and boost investor confidence.
The buyback is expected to stabilize the company's stock price as well as the equity market, said Li Daxiao, chief researcher at Shenzhen-based Yingda Securities. More companies should follow suit, Li added.
Baosteel jumped by the daily limit of 10 percent to close at 4.48 yuan. Jiangsu Yulong Steel Pipe Co rose 6.7 percent to 10.46 yuan.
Brokerages gained after China Securities Finance Corp on Monday issued re-lending rules for margin trading and short selling businesses.
The re-lending business will bring in more earning opportunities for brokerages and reduce short selling cost, said Xia Xuefeng, a Qilu Securities analyst.
CITIC Securities, the biggest listed brokerage, rose 0.5 percent to close at 10.24 yuan. Founder Securities Co gained 2 percent to 4.09 yuan.
China Petroleum and Chemical Corp, the nation's largest oil refiner, jumped 5.4 percent to 6.23 yuan. PetroChina Co, the second-biggest refiner, climbed 2.1 percent to 8.95 yuan.
The key Shanghai Composite Index advanced 0.85 percent to settle at 2,073.15 points, its best daily gain since August 6. The index rebounded from earlier losses in the day and after shedding 1.74 percent on Monday, its lowest close in more than three years.
Baoshan Iron and Steel Co, the nation's biggest steelmaker, said it plans to buy back shares worth 5 billion yuan (US$793.7 million) at no more than 5 yuan per share to protect shareholders' interest and boost investor confidence.
The buyback is expected to stabilize the company's stock price as well as the equity market, said Li Daxiao, chief researcher at Shenzhen-based Yingda Securities. More companies should follow suit, Li added.
Baosteel jumped by the daily limit of 10 percent to close at 4.48 yuan. Jiangsu Yulong Steel Pipe Co rose 6.7 percent to 10.46 yuan.
Brokerages gained after China Securities Finance Corp on Monday issued re-lending rules for margin trading and short selling businesses.
The re-lending business will bring in more earning opportunities for brokerages and reduce short selling cost, said Xia Xuefeng, a Qilu Securities analyst.
CITIC Securities, the biggest listed brokerage, rose 0.5 percent to close at 10.24 yuan. Founder Securities Co gained 2 percent to 4.09 yuan.
China Petroleum and Chemical Corp, the nation's largest oil refiner, jumped 5.4 percent to 6.23 yuan. PetroChina Co, the second-biggest refiner, climbed 2.1 percent to 8.95 yuan.
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